Treaty of Rome (Hansard, 16 July 1992)

§ Mr. Cash
To ask the Chancellor of the Exchequer what degree of convergence of economic performance among the member states of the European Community Her Majesty's Government plan to seek under the terms of the proposed amendment to article 2 of the treaty of Rome.

§ Mr. Nelson
The United Kingdom believes that all member states should take the necessary steps to achieve sound public finances, price stability and flexible labour markets. These are the necessary conditions for non-inflationary growth and the reduction of unemployment.

§ Mr. Cash
To ask the Chancellor of the Exchequer if he will make a statement on the power granted to the Council to enforce its recommendations for broad guidelines of the economic policy of member states as defined by the proposed article 103(2) of the treaty of Rome.

§ Mr. Nelson
Under article 103, the Council may formulate a draft for the broad guidelines of the economic policies of the member states and the Community. The Council's action towards member states deemed not to be complying with the guidelines is, however, limited to non-binding recommendations.

§ Mr. Cash
To ask the Chancellor of the Exchequer how the requirement that the economic policies of member states be regarded as a matter of common concern in the proposed article 103(1) of the treaty of Rome will affect the management of the Government's economic policy.

§ Mr. Nelson
Article 103 develops existing procedures for multilateral surveillance of member states' economic policies. It provides for economic policy guidelines to be recommended by the Council, but these guidelines will not be binding upon member states. The Government do not expect the management of the United Kingdom's economic policy will be affected as they are already committed to sound fiscal and monetary policies and to achieving permanently low inflation.

§ Mr. Cash
To ask the Chancellor of the Exchequer what arc the criteria for convergence of economic performance among the member states of the European Community as required by the proposed amendment to article 2 of the treaty of Rome.

§ Mr. Nelson
The criteria are set down in article 109j of the Maastricht treaty. They include a high degree of price stability, convergence of long-term interest rates, no "excessive" budget deficit and membership of the narrow band of the exchange rate mechanism.

§ Mr. Cash
To ask the Chancellor of the Exchequer what measures the Government propose to take in order to achieve(a) the high level of social protection, and (b) the high level of employment required by the proposed amendment to article 2 of the treaty of Rome.

§ Mr. Nelson
The Government's policies are directed to the achievement of sustained non-inflationary growth. This is the best means of promoting employment growth and social protection.

§ Mr. Cash
To ask the Chancellor of the Exchequer what plans the Government have to alter its policies of indirect taxation as part of the harmonisation of legislation in this area under the proposed article 99 of the treaty of Rome.
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§ Sir John Cope
The Government have no plans to alter their policies on indirect taxation in the context of the provisions of article 99 of the treaty of Rome. This article, as the legal base for fiscal matters, provides for unanimity in decision making, and is not materially altered by the draft Maastricht treaty.